[2021] KEHC 5124 (KLR)
The court found that the debtor had complied with all statutory requirements for a bankruptcy order under Section 32 of the Insolvency Act, including proper service and publication of the petition. No creditor objected or appeared to oppose the petition. The debtor's inability to pay the decretal sums, coupled with...
Source-derived case information.
- Citation
- [2021] KEHC 5124 (KLR)
- Parties
- Debtor: Chrispinus Ojamaa Masiga
- Court
- High Court
- Court Station
- High Court at Busia
- Jurisdiction
- Kenya
- Case Number
- Insolvency Cause 2 of 2019
- Procedural Posture
- Insolvency Cause / Ruling on Debtor's Bankruptcy Petition
- Outcome
- petition allowed; debtor adjudged bankrupt
- Legal Topics
- Bankruptcy Petition, Insolvency Proceedings, Creditor Claims
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Chrispinus Ojamaa Masiga
Debtor
Procedural Posture
Insolvency Cause / Ruling on Debtor's Bankruptcy Petition
Legal Issues
- 1 Whether the debtor meets the statutory requirements for a bankruptcy order under the Insolvency Act.
- 2 Whether any creditor has objected to the bankruptcy petition or appeared to oppose it.
- 3 Whether the debtor is liable to pay the decretal sums arising from the accident in the absence of payment by the insurer.
Ratio Decidendi
The court found that the debtor had complied with all statutory requirements for a bankruptcy order under Section 32 of the Insolvency Act, including proper service and publication of the petition. No creditor objected or appeared to oppose the petition. The debtor's inability to pay the decretal sums, coupled with the insurance company's failure to settle the claims, justified the grant of a bankruptcy order. Accordingly, the court allowed the petition and adjudged the debtor bankrupt.
Court Disposition
petition allowed; debtor adjudged bankrupt
Orders
- A bankruptcy order is issued forthwith adjudging Chrispinus Ojamaa Masiga bankrupt.
Full Case Text
Judgment text and source record
14 paragraphs
REPUBLIC OF KENYA
IN THE HIGH COURT OF KENYA
AT BUSIA
INSOLVENCY CAUSE NO.2 OF 2019
CHRISPINUS OJAMAA MASIGA....................................................................................DEBTOR
R U L I N G
[1] This debtor’s petition was filed herein on 26th November 2011 under the Insolvency Act by Christopher Ojamaa Masiga (herein – debtor) on the basis of the financial and related statements annexed to the petition and the grounds indicated in his supporting affidavit dated 26th November 2019, which shows that the debtor operates a transport business and on the 23rd December 2014 his public service vehicle Reg No.KBM 496U was involved in an accident while it was at the time duly insured. As a result several suits arising from the accident were filed in court situated in Kisumu, Maseno and Bondo. This further resulted in the ill-fated vehicle being attached and auctioned by a firm of Auctioneers after liability was attributed to the debtor such that he was required to pay damage amounting to ksh.9,845,594/= through the insurance company that had insured the vehicle. However, the insurance company failed to pay the claimed amount of money despite being notified accordingly.
[2]Apparently, the debtor was placed in a position that the claimants in the suits arising out of the material accident would turn to him for payment of that claim or compensation for damages suffered as a result of the accident. He contends herein that if he is not adjudged or declared bankrupt he will be forced to personally pay the decretal sums of money. He did not say or give proper reason as to why the insurance company declined to pay the claims on his behalf but it could be that the company disclaimed liability for one or other reasons not indicated herein by the debtor.
Be that as it may, notice of bankruptcy petition was published in the newspaper Daily Nation of 19th February 2020 but none of the existing creditors filed any objection to the petition neither did any of them appear in court at the hearing of the petition despite being served with the necessary hearing notices.
[3] There being no objection to the petition and the debtor having complied with or met the requirements set out in S.32 of the Insolvency Act, No.18 of 2015, the petition is hereby allowed to the extent that a bankruptcy order issues forthwith with the debtor being adjudged bankrupt.
Ordered accordingly.
J.R. KARANJAH
J U D G E
[Read & signed this 15TH day of JULY 2021]